Is “conversational commerce” the next big improvement in online shopping? I hope so. I’m closely following the success of the new Octane AI conversational commerce app. It was announced this week along with convincing data on significant sales increases it generated by actual users. It works with Shopify, the shopping cart platform used by half a million eCommerce sites.
“We are not trying to replace ecommerce websites or apps, said Octane AI CEO Matt Schlicht. “Instead we make them measurably more profitable and effective. Our new app dramatically improves the customer experience on online stores. We combine them with an automated concierge, and we have the numbers to prove it.” Those numbers, by the way …
Stores in the Octane AI private beta, including VerClare Boutique, Pure Cycles, Apt2B, Pearl Paradise, Filly Flair, Sweat Tailor, and Epic Rights, on average had 1 out of 9 Messenger messages sent convert into a sale, over 75 percent open rates on messages sent to customers, and recovered twice as much abandoned cart revenue. Stores in the private beta have made over $750,000 in new revenue.
“Conversation is actually one of the most natural and oldest ways to shop,” Octane AI VP Product Megan Berry told me. “What’s amazing about conversational commerce is the ability to do that at scale through messenger apps and chat. All of your customers can get personalized, instant attention with the help of messenger, automation and artificial intelligence.”
How does it work? CMO Ben Parr adds, “Octane AI is a bot concierge for your store that lives on Facebook Messenger. An Octane AI bot answers customer questions, recovers abandoned carts, and increases sales automatically — their customers see a 7 to 25 percent increase in sales on average. Imagine talking to a store on Messenger and automatically getting product recommendations, shipping notifications, and all of your questions answered. They are leaders in conversational commerce — using conversation, messaging apps, and voice platforms like Alexa to improve the shopping experience.”
The Octane AI website links to specific case studies with detailed numbers. VerClare Boutique founder Cristina Vercler says the app increased her business’s monthly sales by 14%. Pure Cycles founder Jordan Schau said “Octane AI has enabled us to talk to over 10,000 of our customers and has grown our revenue online by about 14%.” And there are more real numbers on the website at octaneai.com.
For the record, I don’t do paid commercial endorsements on this blog. I never have. Occasionally I promote my own books and software, but even that is only a handful of posts among more than 1,800 posts here. Octane AI is special because the Megan Berry I quote above, VP Product, is my daughter. I’ve also known and respected co-founder Ben Parr for years. And as of last year, I am also an investor. So that’s bias, and I’m proud of it.